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Think of how quickly the property can be rented when projecting the home's value. This increases your overall yearly profit margins. After that, it is possible for you to sell the home and realize a greater profit.
A fixer-upper may be cheap, but think about how much you have to renovate to bring it up in value. If the property only needs cosmetic upgrades, it may be a good investment. However, major structural problems can very costly to fix. In the long-run, it may not give you a good return on your investment.
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